The Critical Link Between Home Ownership and Reliable Water Supplies
When it comes to home ownership in rural communities, access to reliable water and septic or sewer systems is crucial. This isn’t just a matter of convenience—it can significantly affect property value and sometimes housing availability. The impact varies depending on location, local water and wastewater infrastructure, and the level of awareness among the public, realtors, and sometimes developers. This blog will focus on why understanding water access is vital to rural real estate for homeowners with incomes of all levels, including unique challenges to those in the lower income brackets.
Location, Location, Location: The Role of Water Access in Property Value
Water availability is a key factor that affects property values, but its significance varies based on where the property is located. In urban areas, access to a reliable municipal water supply is assumed. Properties without access to reliable and non-contaminated water may struggle to sell. In rural areas, especially those dependent on domestic wells, the situation can be more complicated. Here, the quality of the water and reliability of a well can make or break a property sale, especially if the water supply is limited or unreliable.
Both the public and realtors need to become more educated on the implications of water access. Whether it’s the condition of a well, reliability of a local water supply, or known or potential drinking water contaminants, having complete and accurate information is crucial. Homeowners looking to sell their property need to understand how these factors will affect their home’s marketability. Prospective buyers need to know what questions to ask and what inspections to prioritize. Realtors need to know how to best navigate land value for both sellers and buyers in rural areas dependent on domestic well water supplies.
However, in highly desired rural areas the lack of water often does not impact home value because the number of homes available for sale in those areas is slim. In these cases, realtors report that both sellers and buyers often persevere until a mutual price is determined.
Education is Key: Empowering Buyers, Sellers, and Realtors
One thing members of the public want, and all realtors interviewed for this blog agreed on, is the importance of education:they need and want to be more informed. Why? Because uninformed buyers or sellers can end up in bad situations. Imagine purchasing a home in a rural area only to discover that the well is dry or fails a few months later and the cost to replace it is beyond what was budgeted or available. Imagine selling your home, unaware the well was vulnerable to dewatering…the owner asks for a well inspection…now you need to replace the well or drastically reduce the selling price putting you at risk of being unable to purchase your replacement home. Imagine you are the realtor, discovering the well is vulnerable after an offer for the home is made…but the seller doesn’t want to disclose that information because the seller won’t pay or cannot access the thirty thousand dollars (or more) needed to replace or deepen the well.
For sellers, there’s a responsibility to disclose water access issues. Trying to hide or downplay a problem can lead to legal repercussions and even make it impossible to sell the property in the future. Realtors need to ensure they aren’t inadvertently or intentionally misrepresenting information, as that could damage their reputation and sometimes result in legal issues. Realtors can help facilitate smoother transactions and avoid unexpected problems for both parties by having a deep understanding of local water concerns and educating clients. Home buyers and sellers can prepare and make better decisions with sound information.
The Struggles of Low-Income Rural Homeowners
There is a segment of the population that faces unique challenges related to water access. Low or very low-income rural homeowners are sometimes stuck raising their families in difficult situations. The reality is there are low-income rural families who have finally saved enough funds to move into a better home or area, but cannot due to a vulnerable or dry well which drastically lowers the property’s value. Without the financial resources to replace the well, they can’t sell the home. And without selling, they can’t afford to move to that better home or neighborhood.
Some domestic well homeowners inherited their homes from parents, meaning they don’t have a current mortgage, but being low-income they do have a place to live. If their well runs dry, and they can’t afford to replace it, they can only sell for cash, usually at a very low cash price. Banks will not loan on a house that is not inhabitable due to no water supply.
For some rural low-income families, being forced to sell for a low price, might mean moving to an urban area where affordable housing might be more available, giving up on the rural lifestyle they cherish—the small-town culture, local schools, and the chance to raise kids away from city influences. For many, moving would also mean renting instead of owning, a step backward from what their parents achieved.
Impact on Small Rural Businesses
It’s not just homeowners who face these challenges. Small businesses in rural areas, such as stores, eateries, and auto or personal services, often rely on domestic wells. If their wells fail, they face the same issues as homeowners: they can’t afford to replace them, and without water, they can’t operate. This not only affects the business owner but also the rural community that relies on these services and provides local jobs. One rural Fresno County community lost three local eateries that fed and employed local residents and high school students due to lack of water, which also impacted the value of the property.
A Growing Need for Awareness and Solutions
Water access is becoming an increasingly critical issue for homeowners, businesses, and realtors. It’s not just a matter of convenience; it’s a matter of sustainability and financial viability. Ensuring that buyers, sellers, and realtors are well-informed can help prevent unexpected and costly situations. But more needs to be done, especially in rural areas where low-income homeowners and small businesses face significant challenges.
While more concrete data on this issue would help, the message is clear: reliable water access is essential, and understanding its importance can help ensure a stable future for homeowners and businesses alike.
